Lesaka Technologies, a fintech company listed on NASDAQ with a market capitalization of R4.5 billion ($242 million), has announced its acquisition of payment platform Adumo for R1.59 billion ($85 million) in cash and equity.
The completion of the deal is anticipated in the third quarter of 2024, marking a significant expansion of Lesaka’s payment services across the southern African region, spanning five countries.
Founded in 2019 and headquartered in Cape Town, Adumo specializes in providing card-acquiring POS devices, integrated payments, and reconciliation services to merchants and consumers. With an annual processing volume exceeding R24 billion ($1.3 billion), Adumo serves a substantial customer base of 23,000 merchants and 240,000 consumers.
Lesaka already holds ownership of EasyPay, the largest non-bank payment switch in South Africa, and Kazang, a prominent provider of card-acquiring POS devices. By integrating Adumo’s services, Lesaka aims to capture a significant market share in the southern African region, where competing startups like YOCO are primarily concentrated in South Africa.
Earlier in February, Lesaka acquired Touchsides, a data analytics and merchant services company, which boasted over 10,000 point-of-sale terminals across South Africa, from international beverage giant Heineken.
With this acquisition, Lesaka foresees expanding its customer base to 1.7 million active consumers and 119,000 merchants across South Africa, Namibia, Botswana, Zambia, and Kenya. In a statement, the company emphasized that the acquisition reinforces its position as a natural consolidator of Southern African fintech and strengthens its presence in both consumer and merchant markets.
Source: techcabal.com
